Kosmos Energy Ltd. · NYSE:KOS
Kosmos Energy — Q1 2019 Earnings Presentation
13 slides from Kosmos Energy's earnings presentation, May 6, 2019
Slide 1: 1Q 2019 Results
1Q 2019 Results 6 May 2019 NYSE/LSE: KOS 1Q 2019 Results May 6, 2019 0 Strictly Private and Confidential
Slide 2: Disclaimer
DISCLAIMER Forward-Looking Statements This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical facts, included in this presentation
Slide 3: Key Messages From Capital Markets Day
KEY MESSAGES FROM CAPITAL MARKETS DAY • 2019-21: Expect to generate around $1 billion of free cash flow at Cash $60 Brent, potential upside from M/S sell down Generation • 2019-21: Production growth of 8-10% per year Infrastructure Led • Deep prospect inventory driving near-term growth Exploration (
Slide 4: 1Q Highlights: Strong Start To 2019 - Cash Generation
1Q HIGHLIGHTS Strong Start To 2019 Cash Generation • Production – 1Q production ~59,500 boepd, above midpoint of guidance, remain on track for 69-73 mboed for 2019 Ghana − Jubilee currently producing ~100,000 bopd gross Gas reliability improved with spare high pressure compressor now available
Slide 5: 1Q Highlights: Infrastructure-Led Exploration
1Q HIGHLIGHTS Strong Start To 2019 Infrastructure-Led Exploration • Gulf of Mexico − Apparent high bidder on nine blocks in Lease Sale 252 • Equatorial Guinea − Progressing G-13 – targeting 25-200 mmboe − Secured rig option slot, expected to spud late 3Q Mauritania / Senegal • Tortue – progressing o
Slide 6: Gulf of Mexico: Right Basin, Right Time
GULF OF MEXICO: RIGHT BASIN, RIGHT TIME Competition At Historical Lows Easy Access, Plentiful Opportunities, Available Infrastructure 100 1,200 Low Competition 80 1,000 # of companies 800 60 # of bids 600 40 400 Available Infrastructure 20 200 0 0 Partnering With Majors Major & Supermajor Independen
Slide 7: Gulf of Mexico: Lease Sale
GULF OF MEXICO: LEASE SALE 252 Lease Sale Provides Low-Cost Resource Additions In Gulf Of Mexico APPARENT HIGH UNRISKED MULTIPLE PROSPECTS RESOURCE: BIDDER ON SUPPORTING FIVE ~420 MMBOE GROSS NINE BLOCKS FUTURE HUBS ~290 MMBOE NET (TOTAL: ~$11M) Kosmos / DGE Historical Lease Activity 10 $16 Kosmos N
Slide 8: Growing The Gulf of Mexico
GROWING THE GULF OF MEXICO Significant Progress Since Entering The Gulf Of Mexico In September 2018 ACCRETIVE SUCCESSFUL STRONG SIGNIFICANT ACQUISITION INTEGRATION GROWTH POTENTIAL • Acquired DGE, a • Successful • Increased production • Drill 4-5 wells per leading Gulf of integration in 4Q:18 with T
Slide 9: Building Future Hubs
BUILDING FUTURE HUBS Deep Prospect Inventory Provides Multi-Year Growth Opportunity Target Gross Probability Hub Prospects Working Expected Timing Resources of Success (MMboe) Interest (%) (%) Resolution, Defiance, Sioux • First test in 2H:19 Resolution Falls, W Dawson Deep, 500 (Resolution) Gatlinb
Slide 10: Balance Sheet Strength
BALANCE SHEET STRENGTH Recent High Yield Bond Transaction Pushes Maturity to 2026 Debt Maturity Profile ($mm) $1,000 $800 $600 $400 $200 $0 2018 2019 2020 2021 2022 2023 2024 2025 2026 1 RBL RCF 7 7/8 Notes due 2021 7 1/8 Notes due 2026 9 1. Scheduled RBL amortization based on total Facility commitm
Slide 11: Share Register
SHARE REGISTER Significant Reduction In Private Equity Shareholdings Private Equity Shares % of Shares Outstanding1 60% 25% 40% 13% 9% 20% 30% 12% 23% 2% 8% 7% 0% 2016 2017 2018 Current Warburg Blackstone First Reserve Total private equity shareholding = ~35 million shares (8.6%) 1. Positions as dis
Slide 12: FY2019 Guidance
FY2019 GUIDANCE No Change to FY 2019 Guidance FY 2019 Production1,2 69,000 – 73,000 boe/day Opex $12.00-$15.00/boe DD&A $22.00-$25.00/boe G&A3 $115-$125 million Exploration Expense ~$30 million average/quarter Net Interest $35-37 million/quarter Tax $3.00-$5.00/boe Capex $425-$475 million in FY 2019
Slide 13: 1Q 2019 Results May 6, 2019
1Q 2019 Results May 6, 2019 12